Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers
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Question:
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the containers cost They receive a refund when the container is returned. During deposits collected on containers shipped were $
Deposits are forfeited if containers are not returned within months. Containers held by customers at January represented deposits of $ In $ was refunded and deposits forfeited were $
Required:
Prepare the appropriate journal entries for the deposits received, returned, and forfeited during
Determine the liability for refundable deposits to be reported on the December balance sheet.
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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